U.S. economic growth likely slowed in Q1 2018 – Wells Fargo

The U.S. economic growth is likely to have slowed in the March quarter of this year. According to a Wells Fargo research report, the economy is expected to have grown at an annualized rate of 1.3 percent, a slowdown from fourth quarter’s 2.9 percent.

In the prior quarter, personal consumption had grown 4 percent, which was a solid reading. Spending data began the year slowly, but incomes continued to rise at a strong rate and the savings rate rose, giving the consumer room for a strong bounce-back in quarters ahead.

He extreme weather in the initial few months of this year also likely weighed on consumers’ spending, stated Wells Fargo. Residential construction is expected to have fallen in the first quarter, partially due to the weather and some payback for the ramp up in the fourth quarter that reflected rebuilding activity following hurricanes in 2017. International trade is expected to have trimmed growth.

“Business investment is slated to expand solidly, though at a slower pace than H2-2017. Government spending should add to Q1 growth”, added Wells Fargo.

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